Anatomy of a FuturoFX Scalp Trade


Ciao a Tutti,

and thanks for the tremendous response to FuturoFX we launched yesterday. Some customers asked for trade examples, that’s why an hour ago I programmed my FuturoFX to automatically take screenshots (this is a feature any of you can and should use), so that I could show you the logic behind a scalp trade from start to finish. Actually the same logic can also apply to higher timeframes, because you basically should check three things when trading with FuturoFX:

  1. the projections in the future have a good score and are clearly bearish or bullish
  2. there is agreement among projections on a couple of timeframes
  3. current price is above the “channel” (for short trades) or below the “channel” (for long trades)

Here is an example of a trade taken on EURUSD using M1 and M5 charts with almost all default settings. As many of you have already noticed, default settings are often good for H1, H4, or daily charts, while on smaller timeframes we should tweak the settings in order to increase the chance of actually having some correlation matches. Otherwise we would often see FuturoFX displaying “N/A” which means it was not able to find any relevant correlation match. There are three ways for helping FuturoFX find more matches: A) decreasing the look_back parameter, B) decreasing the cor_threshold parameter, and C) increasing the max_history parameter (or putting it equal to zero, which means letting FuturoFX explore the whole history available on chart). I often prefer doubling or tripling the default value of max_history, and I rarely put max_history=0 because correlation matches that go too far in the history are not so relevant in my opinion.

Fore the trade I’m going to show I just put max_history=2880 (two times the default value), display_options=”TABRC” (in order to display also the “channel”), and I left all other settings unchanged.

Here is the initial situation at noon GMT when I started looking at my charts:

From this chart you can see there is some potential for a short trade if price gets near 1.2958. At this point price would be above the “channel” (delimited by the violet and yellow solid lines) on both the M1 and M5 chart. You can also see this is a somewhat risky trade, because we are near the top of the red rectangle, and that means we are near an extreme price area. A breakout above the top of the rectangle could trigger a fast bullish momentum. On the other hand FuturoFX suggests that there is a good potential for actually seeing a double top (or false breakout) followed by a sharp reversal.

That’s why some minutes later I decided to enter a short trade, and next thing I did was to enter a take profit near the most relevant support area, looking just the recent price action on the M1 chart:

Can you notice the “fractal low” at 1.2946 on the M1 chart? That’s why I decided to put my take profit a few pips above that level (also for taking into account the spread).

A few minutes later this was the situation on both charts:

As you can see the charts still suggested a fairly good potential on the downside, therefore I decided to stick with this trade. It was not an easy ride, but since FuturoFX continued to point lower I felt pretty confident with my take profit level. And here is the happy ending 15 minutes later:

I hope you can use FuturoFX for trading the markets with a fresh new perspetive and confidence :-)

Don’t forget there are only a few more copies available at the special introductory price (a 33% discount) 😉

 

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